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Sell your position in MindTree and book all profits, says Investec

Updated : March 19, 2019 12:50 PM IST

Book all your profits in MindTree before the merger with Larsen & Toubro takes place, said Mukul Kochhar, Head of Institutional Sales (India) at Investec Capital Services.

Kochhar said, “This is a hostile takeover for a services company like MindTree. If you look at any large acquisition of an IT services company, the probability of success is always low in the beginning. And, then when you take over that firm, it adds further complexity. Therefore, if the management of MindTree is not on-board then L&T will have to struggle in running the current business.”

He further added “The challenge now would be to run L&T Infotech and MindTree together. L&T Infotech is a sales oriented company while MindTree is people friendly. Both models can work together in the future but integrating the two diverse culture will be a challenge, even if you create incentives for the second layer.”

Disclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.
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